Office 365 Licensing in school

[ITGURU]

Hi

I am currently setting up a test vm for our next set of v next upgrades - windows 11 and office

currently we have windows 10 and office 2019

On installing office 365 using the download from the mvlsc same as for office 2019, on launch of 365 it appears users have to sign in to activation. Is there a KMS for office 365, or how does auto licensing working for 365 on-site?

thanks.